The FSA has recently indicated that risk management services provided to a joint venture participant by another participant in the same venture, or a group member of one of the participants, may not constitute regulated activities ‘by way of business’. Such activities may therefore escape regulation under the new rules governing insurance intermediaries which come into force on 14 January 2005. Thus, the arranging party may not require authorisation from the FSA for such activities.

Consumer insurance products have become a lucrative source of income for service providers and retailers with customers now able to purchase insurance from supermarkets, travel agents, motor dealers and other High Street retailers. This popularity has attracted the attention of Government, which is now seeking to regulate the activity and ensure customers are properly protected.